What’s going on here?
United Natural Foods impressed with its third-quarter results, but shares slid as it withheld a full-year forecast update due to a cybersecurity issue.
What does this mean?
United Natural Foods (UNFI) outperformed last quarter with an adjusted EPS of $0.44, up from $0.10 the previous year and far surpassing analysts’ $0.22 estimate. Sales grew 7.5% to $8.06 billion, fueled by wholesale volume and inflation. However, a cybersecurity attack disrupted order fulfillment, leading the company to delay its full-year guidance. UNFI expects fiscal 2025 earnings between $0.70 and $0.90 per share while managing GAAP losses from a Northeast distribution revamp and contract exit.
Why should I care?
For markets: Evaluating resilience amidst disruption.
UNFI shares dropped 7.5% post-earnings, adding to a 12% year-to-date decline. This reflects market concerns over IT vulnerabilities and uncertain guidance. Investors need to weigh short-term cybersecurity impacts against long-term strategic moves like distribution optimizations.
The bigger picture: Navigating global trade complexities.
With moderate tariffs expected, UNFI’s case highlights broader US-China trade tensions. Ongoing discussions in the UK might shape future tariff policies, impacting global supply chains and industry costs.
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